July 17 (Reuters) - Apple ( AAPL ) is partnering with the

philanthropic arm of real estate firm Sobrato and two other

California-based groups to launch a fund with an initial

investment of $50 million to support affordable housing projects

in the San Francisco Bay Area.

The Bay Area Housing Innovation Fund is part of Apple's ( AAPL ) 2019

pledge to contribute $2.5 billion towards affordable housing

across California, the iPhone maker said on Wednesday.

The growth of the tech sector on the American West Coast,

chiefly in California, has led to a significant increase in

housing prices and strain on residents.

Many tech workers have either moved or are considering

moving to other states and work remotely, while demanding the

tech industry to intervene in the housing crisis.

The fund - for which Apple ( AAPL ) is teaming up with Sobrato

Philanthropies, San Francisco Housing Accelerator Fund and

Destination: Home - will make targeted, favorable loans to

advance affordable housing development.

It will initially support four projects in the greater San

Francisco Bay Area, creating more than 400 homes within the next

two years.

Including its latest effort, Apple ( AAPL ) has allocated more than

$1.6 billion toward affordable housing initiatives in the state,

directly benefiting over 60,000 Californians, the tech giant

said.